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Mar 31, 2021
Graham Q4 2021 Earnings Report
Reported an 11% increase in fourth quarter revenue and strategic diversification into the defense industry with the acquisition of Barber-Nichols Inc.
Key Takeaways
Graham Corporation reported an 11% increase in revenue for the fourth quarter of fiscal year 2021, driven by strong demand in the short cycle business and increased sales to the refining and defense industries. The company's strategic diversification into the defense industry was furthered by the acquisition of Barber-Nichols Inc.
Fourth quarter revenue increased by 11% year-over-year, driven by refining and defense industry sales.
Full year orders were $121.6 million, including $69.2 million from the defense industry.
Backlog at fiscal year-end was $137.6 million, with 76% for the defense industry.
Graham acquired Barber-Nichols Inc. for $70 million to diversify into the defense industry.
Graham
Graham
Graham Revenue by Segment
Revenue by Segment
Defense Revenue
CapyFin.com Forward Guidance
Fiscal 2022 revenue is expected to be $130 million to $140 million, inclusive of BNI’s revenue for the ten-month period, which is expected to be $45 million to $48 million. Adjusted EBITDA for the combined businesses is expected to be approximately $7.0 million to $9.0 million.
Positive Outlook
- Strategic and financial benefits from BNI acquisition are compelling.
- Sales to the defense industry will drive results.
- Efforts to diversify revenue base are amplified.
- Revenue in fiscal 2022 is expected to be $130 million to $140 million.
- BNI's revenue for the ten-month period is expected to be $45 million to $48 million.
Challenges Ahead
- Outlook for fiscal 2022 includes ten months of BNI.
- Purchase accounting needs completion for clarity on gross margin and SG&A expenses.
- Adjusted EBITDA is a non-GAAP measure.
- Reconciliation of forward-looking non-GAAP measures to GAAP measures is not available.
- Unavailable information could significantly impact 2021 financial results.